Trading Taxes — Practical Guide for US Traders
Trading taxes are nuanced. Short-term vs long-term capital gains, wash sales, trader tax status, mark-to-market accounting, qualified dividends, and section 1256 contracts all affect your tax bill. This hub covers what you need to know — but always consult a tax professional for your specific situation.
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- Trading Tax Basics — Capital Gains Explained — Trading gains in the US are taxed as capital gains. Short-term (held < 1 year): taxed at ordinary income rates (10-37%). Long-term (held > 1...
- Wash Sale Rule Explained — Avoid the Trap — The wash sale rule disallows the loss from a security sold and re-bought (or 'substantially identical' security) within 30 days. The disallo...
- Trader Tax Status (TTS) — Qualification and Benefits — Trader Tax Status allows active traders to deduct trading expenses (software, education, computer, home office) and elect mark-to-market acc...
- Crypto Taxes — Every Trade Is Taxable — Every crypto transaction is a taxable event in the US: trading one crypto for another, paying for goods, earning DeFi yield, receiving NFTs,...
- Tax-Loss Harvesting for Traders — Practical Guide — Tax-loss harvesting realizes losses to offset capital gains, reducing total tax bill. Sell loss positions before year-end; buy substantially...